1. A firm reported Net Fixed Assets of $2,674,000 on its end-of-year 2014 balance sheet and Net Fixed Assets of $3,192,000 on its end-of-year 2015 balance sheet. If the depreciation expense of the firm's 2015 income statement was $520,000, what was the firm's net capital spending in 2015?
a. $518,000
b. $1,038,00
c. $2,468,000
d. $3,194,000
2. During 2016, Dazang Inc. had sales of $11,874,000. Cost of goods sold, administrative and general expenses, and depreciation expense were $4,620,000, $1,704,000, and $910,000 respectively. In addition, the company had interest expense of $540,000 and a tax rate of 34 percent. What is Dazang's operating cash flow?
a. $4,156,000
b. $2,760,900
c. $5,550,000
d. $3,127,500